World Bank Partners with RMSI
on Catastrophe Risk Assessment
NEWARK CA, June 27, 2005:
Natural disasters such as a hurricane in Florida
have less short and long-term effect on local
population and regional economies when compared
to a similar disaster in Asia. The World Bank
recognized this fact, with the root cause being
a frequent lack of catastrophic insurance, compounded
by post-disaster funding. For this reason, the
World Bank selected RMSI to conduct a critical
pilot study of the situation.
RMSI, the global IT services company, has successfully
completed all phases of this pilot catastrophe
risk assessment study on behalf of the World Bank.
Involved were four Indian states with a history
of confronting natural disasters: Andhra Pradesh,
Gujarat, Maharashtra, and Orissa. The project
was designed to provide information critical to
the process of risk transfer within Asia.
The project focused on risk assessment pertaining
to the assets of housing and public infrastructure
against natural catastrophes like cyclones, earthquakes,
and floods.
This World Bank initiative was divided into the
following areas of study: assessment of the financial
risks and vulnerabilities of natural hazards to
countries within the region; secondly, evaluation
of the existing post-disaster funding mechanisms
in the region, including catastrophe insurance
and reinsurance; third, exploration of methods
of funding the direct costs of natural disasters
outside the national budget.
“This was a much bigger challenge, in
view of the limitations in India when compared
with developed countries,” said Adityam
Krovvidi, Head of the Risk Management Group at
RMSI. “Limited data and domestic research,
accessibility and reliability of the data, and
also a general lack of appreciation of the benefits
of public and private sector collaboration in
the country made the task an uphill one,”
he added.
The World Bank has successfully used RMSI’s
deliverables from the project, such as risk models
for hazard assessment, vulnerability analysis
and financial implications. The findings have
proven useful for further analysis and research
related to the risk transfer and financing of
catastrophe risk in India.
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